Establishing a company in Germany (GmbH vs. UG)

Thinking about establishing a company in Germany or expanding to Germany, you MUST read this article.

Some of the facts that you need to know before you are starting the process.

In Germany there are two frequently encountered forms of capital companies:

First one is: GmbH (from German: Gesellschaft mit beschränkter Haftung) or limited liability company.

The other one is: UG (from German: Unternehmergesellschaft,(or entrepreneurial company.

In order to establish a company you need to have some kind of capital. In order to establish a GmbH company you need to have a capital of 25,000EUR to start with, while the minimum capital needed for establishing a UG is a mere one EUR only.

So why you shouldn’t run and establish a UG company, but to stop and thinking about the cons and pros of your actions.

Don’t rush into it read this article before you are doing it.

Why it is not necessarily the right choice to take that one EUR out of your pocket and establishing your company right away and why the right choice is to establish a GmbH company instead.


For the complete article